Discounting Your Way to Profits
According to recent statistics, the use of coupons has reached an all time high. In fact, coupon distributing sites have popped up everywhere. Why? Because coupons create interest and generate traffic and have high redemption rates. Or, in plain English: millions of consumers are using them. And there are no short order of companies offering them: from discount codes for Abercrombie to coupons for walgreens, you’d be hard pressed not to find companies offering them, meaning your competition is offering them as part of their marketing mix too and you should probably start thinking about developing one for your business. Let’s discuss some basics.
Design – does the coupon flow with your overall branding strategy? A good design focuses not only on the discount received for the product or service, but should also create brand recognition. Secondly, does the promo make sense? Not all promos are good promos. The last thing you want to do is have so many awesome deals that you lose your shirt on all of them. Many companies have complained about market and profitability erosion by using those Daily Deal sites. So use due diligence and make sure your coupon doesn’t dilute your brand or your revenue stream.
Distribution – There are many ways to get them into your customers hands. Create coupon codes and syndicate these via social networks, create an email blast, use Google offers, etc. Get them out, track where they came from, and how much they converted for.
Some final words. Redemption rates go down you if have too many offers being distributed simultaneously. To overcome analysis paralysis, provide a clear detailed objective, include a product image, use your logo, make sure you have some sort of tracking, and a expiration date. Do this and you will increase your paying client base, your branding and repeat business. And those aren’t bad results when you figure you are now discounting your way to profits.